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You can deduct many purchases on your taxes when you own your own business. From vehicle mileage to the pens on your desk, if you have kept up with receipts, you can deduct them as a business expense. Even a portion of your self-employment tax is considered a business deduction. The deductions you claim can bring you down an entire tax bracket if you are sitting on the edge of a bracket based on your income.

1.

Gather receipts for every purchase or payments you made for your business throughout the tax year. You should store your business receipts in a secure place until you are ready to work with them.

2.

Separate your receipts based on what was purchased. For example, keep all office supply receipts together, all travel receipts together, all furniture receipts together and all tax payment receipts together.

3.

Add up the total of each type of purchase or payment. You will need these totals no matter the type.

4.

Check the current Internal Revenue Service laws regarding each type of purchase or payment you want to deduct. Laws change on a regular basis and so what may have been a 100 percent deduction one year may only be a 50 percent deduction the next.

5.

Multiply the total of the type of deduction you are working on by the percentage the IRS allows you to deduct. This will change as the IRS laws change.

Things Needed

Receipts

Current tax laws

Tip

Have a Certified Public Account or tax professional look over your calculations if you are not confident that you understand the current tax statutes.